Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 11:

In page 9, before section 7, to insert the following new section:
“7.--Section 6 of the Principal Act is amended by the insertion of the following subsection after subsection (5):“(6) Nothing in the foregoing will prevent a credit union from providing certain services, to be prescribed by the Bank, to a credit union or a member of another credit union registered under this Act.”.”.

Essentially this relates to the issues of shared services. While shared services are being provided for at the level of the credit union, the position of the Irish League of Credit Unions and individual credit unions which have approached me is that the Bill should enable shared services at the level of the individual member of the credit union. The key words in the amendment refer only to where it is prescribed by the Central Bank. Therefore, a control mechanism would be in place. It is not that a credit union can roll out services to be shared by members according their free will. It should be prescribed by the Central Bank. My understanding is that the 1997 Act does not allow members to access services. The issue is if credit unions are being allowed to share services, are we moving to a position whereby someone can avail of credit union services in one credit union while being a member of another credit union?

In respect of amendment No. 12, a credit union service organisation is an entity that facilitates the sharing of services. There are credit unions throughout the country doing this already. For example, there is a model in west Cork whereby a group of credit unions work together and share services. The amendment proposes that recognition should be given to a credit union services organisation as a mechanism for delivering the sharing of services.

Amendment No. 13 would give credit unions the power to lend to State-guaranteed projects. The purpose is to allow credit unions to fulfil the potential that we all agree they have to invest in projects with a social value, whether in the areas of health, education or employment. As proposed, the projects would be State-guaranteed and therefore a credit union would not be taking on any additional risk, an understandable concern for the regulator.